The SEC announced that on Jan. 26, 2007, the U.S. District Court for the Southern District of New York entered a final judgment against Michael G. Velasco. Velasco was a registered representative at Deutsche Bank Securities, Inc., a registered broker-dealer and investment adviser. In the complaint in this action, the Commission alleges that Velasco defrauded mutual funds by engaging in deceptive practices to circumvent mutual funds' restrictions on his market timing customers. The final judgment permanently enjoins Velasco from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5. In addition, the final judgment directs Velasco to pay disgorgement of $60,824.26 plus prejudgment interest of $8,063.17, and directs him to pay a civil penalty of $60,824.26. Velasco consented to the entry of the final judgment without admitting or denying the allegations in the complaint. The Commission also announced today that it instituted a settled administrative proceeding against Velasco. The Commission entered an order based on the entry of the injunction barring Velasco from association with any broker or dealer or investment adviser, with the right to reapply for association after 2 years, pursuant to Section 15(b) of the Exchange Act and Section 203(f) of the Investment Advisers Act of 1940. Velasco consented to the entry of the order without admitting or denying its findings except he admitted the entry of the injunction.